NEW YORK, Nov. 1 – German pharmaceutical company Altana has agreed to make an equity investment of 34.2 million euros ($31.1 million) in GPC Biotech, GPC said Thursday.
GPC of Munich said it would issue 1.69 million of its shares to Altana at 20.25 euros a share. Following the transaction, Altana will hold an 8.3 percent stake in GPC, making it the second largest shareholder in the company.
"GPC Biotech has proved itself in a reliable and competent partnership which builds the foundation for our entrance as strategic investor," Hans-Joachim Lohrisch, member of the managing board of Altana, said in a statement.
Since 1998, GPC and Altana’s pharmaceutical division, Byk Gulden, have collaborated to identify targets and validate research on new drug candidates.
GPC Biotech uses proprietary genomic and proteomic technologies to identify targets and to validate potential therapeutics for cancer, infectious diseases, and immunology. The companies other partners include Aventis, Boehringer Ingelheim, Cell Genesys, and MorphoSys. The company has subsidiaries in Waltham, Mass., and Princeton, NJ.
Altana’s pharmaceutical group Byk Gulden is focused on developing new therapeutics and diagnostics.